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HomeMy WebLinkAbout20051202Application.pdf825 N.E, Multnomah St, Portland OR 97232 ,~C:E\\fED - PACIFICORP .. , , r,,~) o. n!. ""' ':.. I' ,,! ,)',, December 1 , 2005 , ..".. ,' \'" '; , \11 ; CD ISSIO\i PACIFIC POWER UTAH POWER VIA OVERNIGHT MAIL Idaho Public Utilities Commission 472 West Washington Boise, ill 83702-5983 PAC-E--o5- Attention:Jean D. Jewell Commission Secretary Re:Application ofPacifiCorp for Approval of an Electric Service Agreement with Nu- West Industries PacifiCorp (d.a. Utah Power & Light Company), hereby submits for filing an original and eight (8) copies ofPacifiCorp s Application for approval of an electric service agreement with Nu-West Industries dated October 31 , 2005. The Agreement replaces an electric service agreement dated December 10 2001, approved by the Idaho Public Utilities Commission in Case No. PAC-01-17. It is respectfully requested that all formal correspondence and Staff requests regarding this material be addressed to: Bye-mail (preferred):datareq uest(fYp ac ifi corp. com By regular mail:Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 800 Portland, Oregon, 97232 By fax:(503) 813-6060 Sincerely, ~ f~r"p,A , D. Douglas Larson Vice President, Regulation cc: Service List Enclosures . (' L II, fl- n ::, \J L I " L u : r~n ,... James M. Van Nostrand, ISB# 7323 STOEL RIVES LLP 900 SW Fifth Avenue, Suite 2600 Portland, OR 97204-1268 Telephone: (503) 294-9679 Fax: (503) 220-2480 t'\ r;,,:o. - L: 1':1) J' .. l:" U B LI C ' '' " ' ('(jVh,1 1SS : :'!: i 1, I Attorney for PacifiCorp dba Utah Power & Light Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION In the Matter of the Application ofPacifiCorp, dba Utah Power & Light Company for Approval of an Electric Service Agreement with Nu- West Industries Case No. f3A E. -0$ - '( APPLICATION OF P ACIFICORP This Application is filed by PacifiCorp dba Utah Power & Light Company ("Utah Power" or the "Company ) for approval of an electric service agreement with Nu- West Industries ("Nu- W est") dated October 31, 2005 ("Agreement"). The Agreement replaces an electric service agreement ("Existing Agreement") dated December 10, 2001 , approved by the Idaho Public Utilities Commission ("Commission ) in Case No. PAC-Ol-17. Utah Power is a public utility doing business in the state ofIdaho and subject to the jurisdiction of the Commission. Nu- West is a Delaware corporation conducting business at facilities for the production of phosphate fertilizer located at Soda Springs, Idaho. Communications regarding this Application should be addressed to: APPLICATION OF P ACIFICORP - Portlnd2-4541666,10020017-00047 Bob Lively ACIFICORP 201 South Main, Suite 2300 Salt Lake City, Utah 84140-0023 Telephone: (801) 220-4052 Fax: (801) 220-3116 James M. Van Nostrand STOEL RIVES LLP 900 SW Fifth Avenue, Suite 2600 Portland, OR 97204-1268 Telephone: (503) 294-9679 Fax: (503) 220-2480 A copy of the Agreement is attached to this Application. The Existing Agreement governing electric service to Nu- West terminates effective December 31 , 2005. The Agreement will become effective January 1 , 2006, subject to approval by the Commission, and will terminate on December 31 2010. On October 26, 2005, in compliance with Commission in Order No. 29833 approving the Stipulation in Case No. PAC-05-, the Company submitted the Revised Tariff Sheet No. 400., reflecting new rates for Nu- West pursuant to the Stipulation. The Company requested an effective date of January 1 , 2006. Section 8.1 of the Agreement provides that PacifiCorp may terminate the Agreement if the order approving the Agreement does not provide for the direct assignment of the revenues and costs from the Agreement to the Idaho jurisdiction for rate making purposes. Accordingly, the Company requests that the order approving the Agreement include an acknowledgement that the revenues and costs related to service under the Agreement are properly assigned to the state of Idaho for rate making purposes. APPLICATION OF P ACIFICORP - 2 Portlnd2-4541666.1oo20017-oo047 Section 8.3 of the Agreement provides that Commission has the authority to modify the rates for service under the Agreement under the same standard that applies to tariff customers generally. Commission-authorized tariff rate changes, including surcharges or credits that apply to service to tariff customers generally, will also apply to service under the Agreement. Accordingly, the Company requests that, except as provided in Section 4.2 of the Agreement, the order approving the Agreement include an acknowledgement that rates for service to Nu-West are subject to modification by the Commission under the same standard that applies to tariff customers generally. Utah Power requests that this Application be processed under modified procedure pursuant to Rules 201 through 204 of the Commission s Rules of Procedure. WHEREFORE, Utah Power respectfully requests that the Commission process this Application under modified procedure and approve the new electric service agreement dated October 31 , 2005 for service to Nu- West's EI Paso substation. DATED: December 1 , 2005. Respectfully submitted es M. Van Nostrand, ISB# 7323 Attorney for PacifiCorp, dba Utah Power & Light Company APPLICA nON OF P ACIFICORP - 3 Portlnd2-4541666.1 0020017-00047 ELECTRIC SERVICE AGREEMENT between P ACIFTCORP and NU-""EST INDUSTRiES, JNC. This ELECTRIC SERVICE AGREEM,ENT (this "Agreerl.1eot"). entered into on this "7/ day of October, 2005 is by and between PacifiCorp, an Oregon corporation CPacifiCorp ), and Nu-West Tndustries Inc., a Delaware corporation e"Nu-Wcst") having a place:: of business within the State of Idaho, located at Soda Springs, Idaho within the county of Caribou. PacifiCorp and Nu-West arc sometimes refeITed to separately as a "Party" and collectively as "Parties vYHEREAS, PacifiCorp is cuITently the pTOvider of retail electric energy and power to Nu-West's phosphate fertilizer production facilities served by Nu-\\Test s El Paso Substation located at Soda Springs, Idaho, and WHEREAS, Nu-West dl::sircs to purchase all firm power and energy requirements for the Facilities under this Agreement, and WHEREAS, PacifiCol1' desires to be the exclusive provider of all firm power and energy to Nu-West's facilities, and NOW , THEREFORE. the parries hereto agree as follows: SECTiON 1: DEFINITIONS As used in this Agreement., the following terms shall have the follov.ring meanings: 1.1 Agreement:This Electric Service Agreement and any renewals thereof. Billing; Dcmand: The Demand in k.i10watts("kW") which is used to dctclmrnc the Demand (power) charges in accordance with The provisions of this Agreement. 1.3 BilJ.jlUl Period:The period of approximateJy thirty (30) days interveJJjng between regular successive meter readings. 1.4 Commission: The Public Utilities Commission ofthe state ofIdaho. 1.5 Contract Demand: The specified Demand in kW that Nu-West requires to meet its 10ad requirements and that 'PacifiCorp agrees to supply and have available for delivery to Nu- Page I of 11 West, which shall be 20,000 kW unless otherwise agreed in writing in accordance with the tcuns of this Agreement. 1.6 Demand: The rate in kW at which PacifiCoTp delivers e1ectric energy to Nu-West either at a given instarJ,t or averaged over any designated period oftilne. 1. 7 Electric Service Regulations ; Pa~ifiCorp s clJ.ITtmtly c::ff~ctivc:: dectDc service rulc::s and regulations, on file with and approved by the Commission, as they may be amended or superseded from time to time with the approval of the Commission., 1. 8 Facilities:Those operating facilities including the EI Paso Substation owned by Nu- West to which PacifiC~)rp shall provide elt:ctric power and energy pursuant to this Agreemcnt, located at or near Soda Springs, Idaho 1.9 Firm Power and Energv: Electric power expressed in kW and associated energy expressed in kWh intended to have assured ava11ability to Nu-West to meet all Or any agreed-upon portion ofNu-West's load requiTemerJts. 1.10 Heavy Load Hours HLH"): Hours of the day from the hour ending 0800 through the hour ending 2300 MO1mtaln Prevailing Time ("MPT") each Monday through Friday except Holidays. Light Load Hours ("LLH") means an other times not -included in HLH. 11 Holidays:Holidays include only New Year s Day, President's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. When a holjday falls on a Saturday OT Sunday, the Friday before the holiday (if the holiday falls on a Saturday) or the Monday following the holiday (if the holiday fans 011 a Sunday) wl11 be considered a Holiday and consequently offpeak (Light Load Hours). 1.12 Measured Demand: The Demand in kW as shown by or computed from the readings of PacifiCorp s power (Demand) meter Icprcscnting Nu-Vlest's f,rteatest use during the Billing Period, adjusted for Power Factor as specified in Section 4. 1.13 Point of Delivery: The point of delivery for all Firm Power and Energy del1vered to Nu~ West shall be at the existing point of interconnection between PacifiCorp and Nu- West a1 the El Paso substatio11. 1.14 Power Factor:The percentage determined by dividing Nu-West's power use in kW (real power) by the kilovolt-ampere power load (apparent power). Nu-West's specific Power Factor and metering criteria can be obtained from Pacifi,Corp upon request 1.15 Prudent Electrical Practices: Prudent Electrical Practices shall mean those practices methods and equipment, as changed from time to time, mat arc commonly used in prudent electrical engineering and operations to operate electric equipment lawfully with safety, and that arc in accordance with the IEEE Standards utilized in the Company s Engineering Handbook ("Handbook"), the National Electrical Safety Code, the National Electric Code Page 2 of \ 1 or any other appljcable government code in effect during the tenn of this Agreement. 1.16 Tariff Rates : The Commission approved rates applicable to Nu-West, including, but not 1imited to, customer charges, demand charges, energy charges, surcharges, and credits, as specified in Idaho Electric Service SchedLlle No. 400 or its successor. 17 Tcrmination Date:This Agreement tenninates on December 31 2010. SECTION 2: TERM AND TERMINA TION This Agreement shaH become effective on January 1 2006 ("Effective Date ), subject to Commission approval., and shall remain in full force through the Termination Date following PacifiCorp s initial delivery of electric power and energy to Nu-West in accordance with this Agreement. SECTION 3: DELNERY OF AND CHARGES FOR FIRM POWER AND ENERGY Scope of Deliveries : PacifiCorp shall deliver such amounts of Firm Power and Energy to the Point of Delivery as Nu-West requires to meet its load requirements up to, but not in excess of, Contract Demand, subject to the provisions of Section 3. ReQuest for Additional Contract Demand: Upon PacifiCorp s receipt of Nu-West's YvTItten request for power and energy above the Contract Demand, PacifiCorp shall use commercially reasonable efforts to attempt to supply such additional power under terms and conditions acceptable to both parties. Within fifteen (15) days of the request PacifiCorp shall advisc Nu- W cst in writing whether the additional power and energy is or can be made available and the terms on which it can be made available. IfPacifiCorp and Nu-West agree that PacifiCorp shall provide Nu-West with Firm Power and Energy in excess of the Contract Demand commitments, the amount of agreed deliveries shall become the new Contract Demaod amending and superseding the Contract Demand !.-pecified in this Agreement. This new Contract Dcmand shall be subject to the same p11cing and adjustments as defmcd in Section 4, Ul11ess otherwise agreed upon in writing. Commencement of Deliveries; PacifiCorp shall make initial deliveries upon the Effcctive Date. Delivery Voltage: PacifiCorp shall deliver FiT1T1 Power and Energy at the Point of Delivery in the form of three-phase, aJtemating CUITent at a nominal freqm:ncy of 60 Hertz, and at a nominal voltage of 138 000 volts. For additional information on the delivery voltage, see the section "Voltage Level and Range" in the PacifiCorp Engineering Handbook. Resale of Power.N u- West shall not resell aJ1Y electric power and energy deli vered under this Agreement to any other person or entity. P~gd of II SECTION 4: BILLING, PRICES AND PAYMENT FOR PUWER A.NO ENERGY Billing: All billing statements for power and energy shall show the amou-nt due for the type and quantity of power and energy purchased and charged in accordance with this Agreement and any charges permitted or required under the applicable Electric Service Regulations. The following charges apply. MONTHLY CHARGES: May - October November - April Customer Charge $ per Month.282,282. Demand C'harge $ per kW -month 11.19 Encrgy Charge $ per MWb HLH Monday through Friday 23.19. HEO800 to HE23aO M:PT LLH All other hours and Holidays 17.33 17. Semi-Annual Adjustment: The chargcs specified in this Section shall be adjusted semi- annually effective July 1 , 2006 and January 1 2007 and each July 1 and January 1 thereafter so that they equal the Tariff Rates. Th1S shall be the sole and exclusive means of adjustment to the unit charges contained herem. Power Factor: Thc charges arc based on Nu-West maintaining at an times a Power FactoT 85% lagging, or highet', as determined by measurement. If the average Power factor for the Billing Period is found to be less than 85% lagging, the Measured Demand as recorded by PacifiCorp s meter for that Billing Period will be increased by:y.. of 1. % for every 1. % that the Power Factor is less than 85%. 4.4 paymenrs: All bi1ls shall be paid by the date specified on the bill, or in the event no date is specified on the bill, 15 days after receipt of the bill for the month, and late charges shall be imposed upon any delinquent amounts. Nu-West must pay all payments by EDI or wire transfer to an account designated by PacifiCorp. The Nu-Wcsr account number must be lududod with each wire transfer. In the event that a ponion of the bin or adjusrmem arising hereunder is disputed, payment of the portion not in dispute shaH be made when due. Nu- West and PaciECorp shall seek to make a determination on any disputed amount wiThin sixty (60) days after issuance 'of Nu- West's notice of dispute. If it is dctc:rmincd thaI the disputed amount is due PacifiCorp, Nu-West shall pay PacifiCorp within 15 days fol1owing the determination, together with interest from the date the bill was originally due at the rate then specified in the Electric Service Regulations on late payments or, ifno rate is specified the then effective prime rate as established by the Morgan Guaranty Trust Bank of New York. Page 4 of 11 Deposits:If at any time Nu-West publicly discloses information which PacifiCorp believes .."ill impact Nu-Wesr's abillty to pay its electric service bills, PacifiCorp may request deposits to the extent permined under the applicable Electric Service Regulations. Such event would be limited to public disclosurc of significant :financial losses; inability to make scheduled debt payments; foreclosure of assets. or disclosure that the company is considering .filing for bankruptcy. In the event Nu-West defaults in any of its obligations under this Agreement or the applicable Electric Service Regulatlons, Pac;jfiCorp may exercise any or all of its rights and remedies under this Agreement, the applicable Electric Service Regulations, and under any applicable laws , rules and regulations. SECTION 5: :METERING Metering Equipment:PacifiCorp shall provide, maintain and test meters aud metering equipment required for billing purposes. The parties shall specify the locations for. PacifiCorp s installation of metering equipment in Nu-West's premises , 3Ild Nu-West shall allow PacifiCorp access to such locations without charge during reasonable:: busincss hours. Telecommunications F~ilities: Upon PacifiCorp s request, Nu-\Vest shall install a dedicated telephone line for meter reading purposes without charge to PacifiCorp. Nu-West shall pay all recurring charges related to line operation. Secondary Metering: If the Point of Delivery is on the primary side of Nu-West' transformers, PacifiCorp may elect to install its meter on the secondary side of the transformers. whereupon lransfonner and other losses occurring between the Point of Delivery and the meter shall be computed and added to the meter readings to determine the rnonthly demand and energy consumption. Transformer Loss Curves: If Nu-West takes service at primary voltage and if secondary metering is used, Nu- West shaJJ . prior to commencement of service, provide PacifiCorp with transformer loss curves and test data to allow Paci'fjCorp to calculate transformer losses for bi111ng pwpOSC5. SECTION 6: OPERATIONAL CONSTRAINTS 1 For details on the operational constraints and pow~r quality, refer to the PacifiCorp Engineering Handbook, Scction- POWeT Quality. All measurements of currents and voltages under this Section shall be taken at the Point of Delivery. Reactive Requirements: Nu.-Westshall control3Ild llmit the flow of reactive power between PacifiCorp s and Nu-West's system so as to maintain a Power Factor in accordance with the Section 4.3. PacifiCorp s Billing Demands shall be Increased in accordancewjth Section 4. for excessive reacti ve flow. Yolta.gc Drops : In order to receIve electric servicc from Paci'6Corp, Nu-Wcst shall Page 5 of 11 continuously comply with PacifiCorp s flicker guidelines and with the operating criteria set forth in the PacifiCorp Engincering Handbook, Section "Voltage Fluctuation and Fliekcr operation outside of these limits is desired, Nu-West must contact PacifiCorp for engineering studies to be done prior to changing operations. 6.4 HanTIOn1C Distortion: Nu-West shall operate the Facilities in sueh a manner so that the harmonic distortion and notching falls within PacifiCorp s adopted guidelines and standards as described in the PacifiCorp Engineering Handbook. Section "Harmonic Distortion Volta!!c Balance: NlJ-West shall operate the Facilities in such a -manner so that the PacifiCorp system voltage balance falls within PacifiCorp s adopted guidelines and standards as described in the PacifiCorp Engiueeri.ng Handbook in the Power Quality S cellon. Volta~e Tran!=:ients: Nu-West shal1 operate the Facilities in such a manner so that the PaeifiCorp system does not experience transient magnifi.cation issues, such as those outlined in PacifiCorp s adopted guidelines and standards as described in the PacifiCoII' Engineering Handbook - Power Quality Section. Remediation~Tn the event that the Nu-Vlest s operations. fall outslde of the technical requirements of this contract. or the ~quirements set forth in the Electric Service Regulations or adversely affects the operations of PacifiCorp s ITaJlsmission or distribution system, or other PacifiCoI1' customers. PacifiCoII' shall give Nu- West written notice of the corrective actions required, and Nu-Wcst shall have the opportunity for a period of fourteen (14) days to discuss PacifiCorp s requlrements. Although PacifiCorp wm discuss the corrective action wlth Nu-West) any final dctc-nninati.ou of the co:rrccbvc action required shall be based on compliance with PacifiCo:q:,"s Engineering l1andbook, guidelines and standards. After such fourteen- (14) day period, PacifiCorp shall give Nu-West its final determination of PacifiCorp s required corrective action. Should Nu-West fail to begin to take corrective action required by PacifiCorp withln thirty (30) days after written n()tice from PaclfiCorp or fail to pursue completion of such coITective action with diligence. PacifiCorp may perform such services or supply and install such equipment as it deems necessary to provide corrective action, whereupon Nu-West shall compensate PacifiCorp for all sums expended, all materials utilized, and all services eo:ntracted or performed, by paying a sum equal to 110% of all costs. expenses, material, and labor charges incurred by PacifiCorp, including PacifiCmp s internal material and labor charges and standard overhead costs. Nu- West shall pay such sums wirhin fifteen (15) days after PacifiCorp has maiJed N1.l-West an itemized statement of its charges therefore. TfNu-West desires to operate outside of these limits. Nu-West shall pay for studies done by PacifiCorp to detennine the impact on other PacifiCorp customers and lfthe proposed operation is acceptable. Notification. Nu- West shall nm:ify PacifiCoYp prior to increasing its consumption of electric power and energy that win exceed the nonnal operating limits of the Facilities and Nu-West shall provide sufficient time for PacifiCorp to accommodate such loads. Nu-West shall also notify PacifiCorp prior to any significant change in load charactenst1cs or installation of a Page () of II II significant number of devices (such as power factor coITection capacitors, dynamic brakes adjustable speed drives, etc.) that could impact the operation of the PacifiCorp system and the interacTIon with Nu- West's system. Please refer to the Power Quality Section in the PacifiCorp Engineering Handbook for additional infonnation and guidelines. SECTION 7: iNTEGRATION; AMENDMENT This Agreement contains the emire agreement of the parties with respect to the subject matter~ and replaces and supercedes in their entirety all prior agreements between the parties related to the same subject matter. Except pursuant to Sections 8 and 11 below. this Agreement may be modified only by a subsequent written amendment or agreement executed by both parti~. SECTION 8: JURISDICTION OF REGULATORY AUTHORITJES 1 This Agreement is subject to approval of the Comm.i ssion , IT) the event the Commission order approving this Agreement does not provide for the dircct assignment of the revenues and costs from this Agreement to the Idaho jurisdiction for rate making purposes, PacifiCorp may terminate this Agreement by providing Nu-West Dotice within 30 days the entry of the Commission s Order- In. the event that the Commission Order approving this Abrreement contains any condition that is materially adverse to either parry, the party adversely impacted by the condition may terminate tills Agreement by providing the other party notice within 30 days of the entry of the Commission s Order. 2 The Electric Service Regulations of Pacifj,Corp, together with all chan,gcs and amendments thereto as approved by the Commission, axe incorporated here1n and made a part of the agrecmc;nt. Once the Commission approvcs the Agreemcnt, the provisions of the:; Agreement shall take precedence over any conflicting provisions of PacifiCorp' s Electrical Servjce Regulations. 8.3 The parties agree that the Commission has the authority to modify the rates for service under this Agreement unde-r thl;: same standard that applies to tariff customers generally. Accordingly, surcharges or credits that apply to service to tariff customers gEmerally will also apply to service under this Agreement. 8.4 In the event that the statutes of the state of Idaho are amended to provide Nu-Vl est .vith the ability to choose an c1~ctric supplier other than PacifiCorp, eitb.er party may terminate the Agreement within 90 days of the effective date of the legislation by written notice delivered to PacifiCorp. SECTION 9: FORCE MATEURE Neither Parry shall be subject to any liability or damages for inability to provide or receive service to the extent that such failure shaH be due to causes beyond the control of e1ther PaciflCorp or Nu-West, including. bur not limited to the following: (a) the operation and effect of Page 7 of 11 II I I' any rules, regu1abons and orders promulgated by any Commission, munic.ipality, or governmental agency of tho United States, or subdivision thereof (so long as the claiming party has not applied for or assisted in the application for, and has opposed where and IO the extent reasonable, such government action); (b) restraining order, injunction or similar decree of any court; (c) war; (d) flood; (e) e3rl:hquakc; (f) act of God; (g) civil disturbance; or (h) strikes or boycotts. Sbould any of the foregoing occur, the minlmum charges and early termlnation charges that would other,yise be applicable under this Agreement shall be waived and Nu-Vlest shall have no liability for service until Nu-West is abl e to resume service; provided , the parry claiming Force Majeure shall make every reasonable attempt to remedy the cause thereof as diligently and expeditiously as possible. Time periods for performance obligations of parties herein shall be extended for the period during which Force Majeure was in effect. Tn the event that a Force Majeure event occurs, and Nu-West does not resume service at pre-event levels within s-ix (6) months of the beginning of the event, the contract will be treated as terminated, pursuant to Section 2 above. SECTION 10: ASSIGNMENT Neither Company nor Nu-West shal1 assign this Agreement without the written consent of the other party hereto, which shall not be unreasonably withheld; provided, Nu-West may assign this Agreement without such consent to an entity that acquires the majority of the value of Nu- West's operating facilities, in whjch evl;mt Nu-West as assignor shall guarantee the assignee perfonnance of Nu-Wes(s obligations under this Agreement and funher provided that Company may assign this Agreement without 311Y such consent to 311 entity that acquires the majority ofthe value of Company s facilities, in which event Company as assignor, shall guarantee the assignee s performance of Company s obligations. Any ;;Lsslgnee aT s.u.cceS$or ofNIl-We~t shall remain subject to such allY assignee or successor s qualificatioD as a customer under Company policies and the Electric Service Regulations, and shall be bound by this Agreement, the Electric Service Regulations, and assume the obligations ofNu-Wcst from the date of assignment. This Agreement shall 1-nure to the benefit aDd be biI1ding upon any authorized assignee, its agents and assigns; provided, that nothing herein shall prevent either party from assigning this Agreement to its parent corporation or to its survivor in connection with a corporate reorganization so long as such assignee is solvent and is able to meet its obligations hereunder for the Agreement and the Electric Service Regulations. SECTION 11; INFORMATION 11.1 Furnishing Information , Upon PacifiCorp s request, Nu-West shall submit its year-end financial statements to PacifiCorp, certified to be true and eoITCct and in accordance with GAAP. Furthennore. Nu-Wcst shall submit additional infonnation as Paci-fiCorp may reasonably request from time to time in furtherance of the purposes of this A~,':reemel1t. This infonnation will be considered confidential by PacifiCorp. 11.2 AccurdcyofTnfo:rmation. Nu- West represents that aU information it has fumished or will furnish under this section to PacifiCo-rp wi11 be accurate and complete in all material respects. Nu-West also represents that Nu-West has not omitted and will not knowingly Page g of 1 \ , .' omit any fact in connection with the information to be furnished under this section which materially and adversely affects the b11siness, operations, property or conditi.oTl of the Facilities or the obligal'ions of PacifiCorp under this Agreement. Should PacifiCorp base its willingness to enter into any portion ofiliis Agreement or any decision with respect to credit, deposits or any other material matter, on inaccurate information furnished under this section by Nu-West for any reason, PacifiCorp shall have the right to revoke iTs decision with respect to such matter and modify this Agreement and/or its decision to reflect the determination which PacifiCorp would have applied had PacifiCorp received aCcllrate informat1on. SECTION 12: REPRESENT A rIVES AND NOTICES For the purposes of this Agreement, any notices required to be given hereunder shall be sent postage prepaid, by registered 01' certified mall , return receipt requested (or alternately by facsimile or any other method acceptable by both parties) to the parties at the respective addresses below and shall be deemed to have been given when received as evidenced by the appropriate receipt verifying delivery: Representatives ofNu-Wcst: Nu-West Industries, Inc. 13131 Lake Fraser Drive SE Calgary, Alberta T2J 7E8 Canada Attn: Vice President SLlppJy Management Fa."\(:(405) 225-7616 Representatives ofPacifiCorp: Paci fi Corp Dir.etal', B:n8!'SY Can.uaotl 825 NE Multnomah Street Portland, OR 97232 Fax:(503) 813-7190 SECTION 13: REMEDIES; WANER Either party may exercise any or all of its rights and remedies under this Agreement, the applicable Electric SeTVice Regulations and under any applicable laws, rules and regulations. PacifiCorp s liability for any action arising out of its activities relating to this Agrecmenr or PacifiCorp s electric utility service shall be limited to repair or replacement of any non-operating or defective portion of PacifiCorp s elecuic utility facilitics. Under no circumstances shall PacifiCorp be liable for any economic losses, costs or damages, including bUt not limited to Page 9 of I I special, indirect, incidenta1~ consequential, punitive~ or exemplary damages. No provision of this Agreement or the Electric Service Regulations shal1 be deemed to have been waivt;;d wUc::ss StIch waiver is in writing signed by The waiving party. No failure by any party to insist upon the strict performance of any provision of th1s Agreement, the Electric ServiCe Regulations or to exercise any right or remedy consequent upon a breach thereof. shall constitute a. waiver of any such breach of such provision or of any othc:r provision. No waiver of :my provision of this Agreement or the Electric Service Regulations shall be deemed a waiver of any other provision of this Agreement, the Electric Service Regulations or a waiver ofsuch provision with respect any subsequent breach, unless expressly provided in writing. SECTION 14; GOVERNThfG LAW; JURISDICTION; VENUE All provisions of this Agreement and the rights and obligations of the parties hereto shall in cases be governed by and constru.ed in accordance with the laws of the State of Idaho applicable to contTacts executed in and to be wholly perfonncd in Idaho by persons domiciled in the State of Idaho. Each party hCToto agrecs tha1 any SU1t,- action or proccc::ding seeking to enforce any provision of, or based on any matter arising out of or in connect1on with , this Agreement, the Electric Service Regulations or the transactions contemplated hereby or thereby. may only be brought before the Commission, thc Federal courts located within the State of Idaho, or state courts of the State ofIdaho, and each party hereby consents to the exclusive jurisdiction of such forums (and of thc appellate courts therefrom) in any such suit, action or proceeding, Furthermore, each party hereto waives, to the extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such forum or that any such suit.. action or proceeding which is brought in any such forum has been brought in any inconvenient forum. If, for any reason, service ofproces5 cannot be found in the state of Idaho, process in any such suit, action or proceeding may be served on a party anywhere in the \J,lorld, whether within or withou.t the jurisdiction of any such foru.m. SECTION 15: WANER OF JURY TRIAL EACH PARTY HERETO HEREBY TRREYOCABLY WANES ANY AND ALL RlGHT DUAL BY JURY IN ANY LEG1\L PROCEEDING ARISING OUT OF OR RELATING THIS AGREEMENT.~ THE ELECTRIC SERVICE REGULATIONS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. SECTION 16: HEADINGS The descriptive headings contained in this Agreement are included for reference ODJ.y and shall not affect in anyway the meaning or interpretation of this Agreement. Page 10 of 11 TN WTTNESS \VHEREOF, the parties hereto have caused this Agreement to be executed by person,s duly authoril'.ed as of the date first above written. By: kA/ ;(?(NC' Namc; Chris Tworek , Supply ManagemenlTitle: ACU1CORP Name: Stan K. WattC::Ts Title: SVP, Commercial & Trading Address:Add(ess: Fax:(503) 813-7190 Nu-West Indusl'rie~. Inc. 13131 Lake Fraser DJive SE Calgary, Alberta T2l 7E8 Canada 825 NE Multno111ah Stred Portland, OR 97232 fax:(405) 225-7616 P~lgt: 11 or 11 CERTIFICATE OF SERVICE I hereby certify that on this 1st day of December, 2005 , I caused to be served, via u.S. mail, a true and correct copy of the foregoing document to the following: Chris Tworek Nu- West Industries, Inc. 13131 Lake Fraser Drive SE Calgary, Alberta T2J 7E8 Canada Peg ~ Supervisor Regulatory Administration CERTIFICATE OF SERVICE -